The Ministry of Digital Transformation of Ukraine has announced that on August 23, 2021, the Law on Digital ID in Diia came into force. Ukraine is the first country in the world with digital IDs that have the same legal force as paper documents. From now on, no one will have the right not to accept Diia. An ID card and a biometric passport are available in the application. Now you can use them anywhere in Ukraine. This is one of the main steps on Ukraine’s path to a paperless regime.
The validity of the ID in Diia can be checked via a QR-code, which is valid for three minutes. This makes it impossible to forge, steal or forget your ID. And everyone can check its reality through their smartphone. This is the principle of people to people, which the Ministry of Digital Transformation implements during the launch of all our services.
To expand the functionality of digital ID, the Ministry of Digital Transformation has launched document sharing. This is a feature that replaces photocopiers and scanners. The digital copy enters the requester system immediately from your smartphone.
If Diia is not accepted even after August 23, you must contact support. The implementation team will understand the situation and correct it.
Entering paperless mode is a long and complex process. It's always hard to get used to something new, but the Ministry of Digital Transformation has made it easy. Paperless.diia.gov.ua is the only portal where instructions on the operation and use of digital documents are collected. There you can find everything – from authorization in the application or on the portal to obtaining an electronic signature. New instructions will appear there as soon as new electronic services are launched.
The Cabinet of Ministers of Ukraine has adopted an order on the transfer of working days in 2022 in order to create favorable conditions for the rational use of working time and the celebration of holidays. Heads of enterprises, institutions and organizations, which have a five-day working week with two days off on Saturday and Sunday, will be able to transfer working days from Monday, March 7 to Saturday, March 12, and from Monday, June 27 – to Saturday, July 2.
The special mode of operation of banks and their institutions these days will be determined by the National Bank of Ukraine.
This transfer will create favorable conditions for celebrating holidays and recreation for four consecutive days. The decision of the Government will not lead to the establishment of working days for six consecutive days, to the violation of the balance of working hours during the year, the reduction of the salary fund, etc. Instead, employees will be able to plan their vacation in advance.
The Ministry of Finance of Ukraine has approved three Generalized Tax Consultations on Transfer Pricing (hereinafter – TP) and Taxation of Income of Non-Residents.
Based on the results of the work of the Expert Council for the Preparation of Generalized Tax Consultations (hereinafter – GTC) at the Ministry of Finance, Orders of the Ministry of August 20, 2021 approved Consultations on:
- issues of taxation of income of non-residents, which are equated to dividends (Order No. 480);
- filling in the notification on participation in the international group of companies (Order No. 479);
- temporary suspension of the deadline for taxpayers to respond to requests from regulatory authorities to submit documentation on transfer pricing (Order No. 478).
The State Tax Service of Ukraine in individual tax consultation No. 2669/ІПК/99-00-04-03-03-06 of July 7, 2021 drew attention to the liability applied to the tax agent for errors in filling out the calculation, namely the fine to the enterprise in accordance with item 119.1 of the Tax Code of Ukraine (hereinafter – the Tax Code) in the amount of 1 020 UAH for the submission of inaccurate information (for repeated during the year there is a double amount – 2 040 UAH). Such a penalty is provided in particular for errors in the registration number of the taxpayer's account card.
If the insurer independently corrects in the calculation of unreliable information about the insured person, the sanctions are not applied by the tax authorities.
The President of Ukraine has introduced draft Law No. 5864 on recognizing the Day of Ukrainian Statehood as a day off. The President signed a decree on the establishment of this holiday on August 24 during the celebrations on the occasion of the 30th anniversary of Ukraine’s independence.
The draft provides for an amendment to Art. 73 of the Labor Code of Ukraine, supplementing it with a new paragraph on the establishment of July 28, the Day of Ukrainian Statehood as a holiday. Thus, the Day of Ukrainian Statehood will be a holiday.
According to the explanatory note to the draft, its adoption will help to establish the continuity of more than a thousand years of Ukrainian statehood, as evidenced by the first mention of the founding of the city of Kyiv, the historical events associated with the activities of the prominent statesman Volodymyr, Grand Prince of Kyiv. European civilization choice of Kyivan Rus (Kyivan Rus state), the successors of which are, in particular, the Principality of Galicia-Volhynia, the Grand Duchy of Lithuania, the Ukrainian Cossack state (Hetmanate), the Ukrainian People’s Republic, the West Ukrainian People’s Republic, the Ukrainian state, the Carpathian Ukraine and modern Ukraine.
The National Bank of Ukraine plans to repeal a number of regulations that do not comply with the updated insurance legislation. To this end, a draft resolution has been published for public discussion, which provides for the repeal of regulations that do not comply with the new regulation of insurance of agricultural products with state support.
These are joint acts of the previous regulator of the market of non-banking financial services and the Ministry of Agrarian Policy, which lost relevance in connection with the adoption of Law of Ukraine “On Amendments to Certain Laws of Ukraine to Improve Legal Regulation of Agricultural Products Insurance with State Support” No. 1601-IX of July 1, 2021.
This law significantly updates the system of state support for agricultural insurance. The normative legal acts proposed by the National Bank do not comply with the new law in terms of requirements for participants in the market of agricultural insurance with state support, the list of insurance products, requirements for agricultural insurance contracts with state support.
It will be recalled that the new law introduces a mechanism of state support for agricultural producers in terms of agricultural insurance, in particular, offers a transparent mechanism for participation of insurance companies, allows farmers to insure their products and receive compensation from the state part of the insurance payment. We are talking about a refund of up to 60% of the insurance payment.
The public discussion will last for one month. The National Bank accepts proposals and comments until September 21, 2021.
The National Bank of Ukraine, in order to ensure the settlement of practical aspects of determining the amount of credit risk on active banking transactions, Resolution of the NBU Board no. 87 of August 13, 2021, amended:
- Resolution of the NBU Board No. 351 of June 30, 2016 “On Approval of the Regulations on Determining the Amount of Credit Risk on Active Banking Transactions” (as amended) – in terms of granting the right to banks that transferred assets of a debtor – a legal entity to individual for further assessment by a simplified approach, until October 1, 2021 not to apply the sign of default and information about 10 (default class) from the Credit Register of the NBU, which are related to the lack of financial statements of the debtor in the bank;
- Regulations on determining the amount of credit risk by banks on active banking transactions, approved by NBU Board Resolution No. 351 of June 30, 2016 (as amended), – in terms of clarifying the application of certain conditions to credit risk assessment under the simplified approach.
The State Tax Service of Ukraine has informed that Order of the Ministry of Finance No. 439 of August 2, 2021 “On approval of the form of a one-time (special) voluntary declaration and the Procedure for its submission” enters into force on September 1, 2021.
We remind you that on September 1, 2021 a one-time (special) voluntary declaration by citizens of Ukraine of assets (located in Ukraine and/or abroad), which belong to them on property rights and from which, in accordance with the law and/or international agreements, taxes and fees have not been paid or have not been paid in full, becomes effective.
One-time (special) voluntary declaration will be made by submitting a one-time (special) voluntary declaration to the State Tax Service of Ukraine through the private part of the User Account in the section “One-time (special) voluntary declaration”.
The Supreme Court of Ukraine, composed of a panel of judges of the Administrative Court of Cassation (decision of August 19, 2021 in case No. 804/3049/17) considered the dispute between the employer and the State Labor Office regarding the possibility of performing high-risk work under a civil contract.
It was once again emphasized that it is inadmissible to issue a civil contract for the performance of dangerous work with individuals who do not have the appropriate knowledge, experience and, in cases specified by law, permission (permit), as well as work that is permanent.
In addition, since the declaration of compliance of the material and technical base with the requirements of the legislation is submitted and authorized by the employer, the high-risk work specified in such a permit can be performed only by employees of such employer and not by individuals providing services under civil contract, provided that they do not have permits to perform such work.
Along with such findings, the Supreme Court also did not take into account the plaintiff’s arguments that an integral part of the offense under Art. 265 of the Labor Code, – the presence of payment of wages (remuneration) without accrual and payment of a single social contribution (hereinafter –SSC) and taxes.
In para. 2 item 2 Art.. 265 of the Labor Code provides for three independent violations:
- admission of the employee to work without registration of the employment agreement (contract);
- registration of the employee for part-time work in case of actual performance of full-time work established at the enterprise;
- payment of salary (remuneration) without accrual and payment of SSC and taxes.
Common to the above offenses is a sanction that provides for a fine of 10 times the minimum wage established by law at the time of the violation, for each employee in respect of which the violation was committed, and for legal entities and sole proprietors who use hired labor and are single taxpayers of 1-3 groups, warnings are applied.
